Factoring History

You are about to be relieved of the stress and time consuming process of collecting on your accounts receivable.

Factoring History

Factoring History

Welcome to factoring. Whether you own a business,
look forward to building one or are looking for new
financial tools for your current employer,
Factoring can help you reach your financial goals.
Factoring has the ironic distinction of being the
financial backbone of many of America's most
successful businesess.

Why ironic? Because
factoring is not taught in business colleges, seldom mentioned in business plans and is relatively
unknown to the majority of American business people,
yet it is a financial process that frees up
billions of dollars every year, enabling
thousands of businesses to grow and prosper.

Factoring is the process of purchasing commercial accounts receivable(invoices) from a business
at a discount. Business practices today dictate
that in order to get business you, as a provider
of goods and services, must extend terms to
your customers.

These terms can squeeze the life(and cash is
the lifeblood of any business) out of a
new or struggling company.

Factoring has a long and rich tradition,
dating back 4,000 years to the days of Hammurabi. Hammurabi was the king of Mesopotamia,
which gets credit as the "cradle of civilization."
In addition to many other things, the
Mesopotamians first developed writing,
put structure into business code and
government regulation, and came up
with the concept of factoring.

After a while, Hammurabi and the Mesopotamians
went the way of extinct civilizations,
but factoring endured. Almost every civilization that valued commerce has practiced some form of factoring, including the Romans who were the first to sell actual promissory note at a discount.

The first widespread, documented use of factoring occurred in the American colonies before the revolution. During this time, cotton, furs and timber were shipped from the colonies. Merchant bankers in London and other parts of Europe advanced funds to the colonists for these raw materials, before they reached the continent. This enabled the colonists to continue to harvest their new land, free from the burden of waiting to be paid by their European customers.

Recognize that these were not banking relationships as they exist today. If the colonists had been forced to use modern banking services in eighteenth century England, the process would have been much slower. The banks would have waited to collect from the European buyers of the raw materials before paying the seller of these goods, the colonists. (And at that point, who needed the bank?) This was not practical for anyone involved. So, just as today, the "factors" of colonial times made advances against the accounts receivable of clients, enabling the clients to continue with their operations, long before they had been paid for what they were sold.

With the advent of the Industrial Revolution, factoring became more focused on the issue of credit, although the basic premise remained the same. By assisting clients in determining the creditworthiness of their customers and setting credit limits, factors could actually guarantee payment for approved customers.

This is known as factoring without recourse(or non-recourse factoring)and is quite common in business today.
Prior to the 1930's, factoring in this country occurred primarily in the textile and garment industries, as the industries were direct descendants of the colonial economy that used factoring so specifically. after the war years, factors saw the potential to bring factoring to other forms of invoice-based business and the expansion began.

Today, factors exist in all shapes and sizes: as divisions of large financial institutions or, inlarger numbers, as individually owned and operated entreprenurial endeavors.
Many of these private factors sprung up in record numbers as interest rates rose to new heights in the 60's and 70's. This trend intensified in the 80's, primarily due to the increasing impact of interest rates and changes in the banking industry. With banks becoming too expensive and too inflexible due to heavy regulation(remember the Savings and Loan crisis?), the small businessperson was forced to find other sources of financing for expansion and growth. As more and more banks stop befriending the small bussinesperson, factoring is becoming an increasingy popular option.

This year alone thousands of businesses will sell billions of dollars in accounts receivable, and they are doing it for profit, growth, and in some cases , their very survival.

WE PROVIDE HUNDREDS OF MILLIONS IN CASH EACH YEAR

We relieve your headaches and stress of collecting on accounts receivables.

Best Rates

We deliver exceptional funding services at the lowest rates.

Best Service

You work with a dedicated representative and assistant.

Best Rates

We deliver exceptional funding services at the lowest rates.

Best Service

You work with a dedicated representative and assistant.

Most Convenient

You have 24/7 account access 365 days a year.

Always Reachable

Factoring is great for any business that offers services or delivered goods.

Fast money for businesses that need it

Don’t wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank’s schedule.

MAXIMIZE YOUR TIME BY MINIMIZING THE COLLECTION PROCESS

If you need cash and you’re sitting on a lot of unpaid invoices then factoring with us is the way to go. We’ll give you the cash that your business needs and collect from your customers.

NO DEBT - JUST CASH

Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.

CAN’T GET A LOAN

If you’re a start-up or your business has a poor history or credit then you can still get the cash that you need. Today’s banking atmosphere makes it a challenge for even the most-qualified businesses to get a loan. Factoring takes care of all of that.

HELP SMALLER BUSINESSES WITHOUT THE STAFF

Without a collections department or a small staff, collections often come down to you doing all of the leg work. Our Factoring Service will alleviate that burden and provide the service that you’re not equipped to handle.

give us a call and Get started with the best factoring company in the industry.